The Lamacchia Monthly Housing Report highlights home sale statistics, average sale prices, the number of homes listed and pending as well as price changes for single-families, condos, and multi-family homes in Massachusetts. For New Hampshire, it presents home sale statistics and average sales prices. These factors, when compared year over year, are all indicators for predicting future trends in the market. 2019 will be examined in some areas to highlight the lingering impact of COVID in real estate.
Highlights:
- Sales and prices are up, signifying a strong end to the summer market.
- Sellers have had the upper hand for a long time but need to be prepared for more inventory, meaning buyers won’t have to compete as much. Price accordingly.
- Prices increased, as they’ll continue to do for the foreseeable future due to buyers outbidding one another or paying what sellers ask. This phenomenon may calm down in Fall.
- Similar to what we saw in July, there are fewer sellers listing this year than this time last year, but the decrease in pending sales means that inventory is likely to linger for a longer time than what we’ve seen in the past two years.
- Price changes are down slightly year over year.
- Single family homes are being sold an astounding 206.7% faster than last year at this time. Many families were trying to secure a home before school started.
- Low mortgage rates should entice buyers to stay motivated to buy as rates and prices seem likely to increase as the year progresses.
Massachusetts Home Sales Up 1.6%
Sales are up just over one and a half percent year over year with August 2021 at 10,004 over 9,842 last August. Single family sales dropped year over year, but condo and multi-family sales are on the rise. With vaccinations and safety measures in place, communal living is back in demand.
- Single families: 6,675 (2020) | 6,318 (2021)
- Condominiums: 2,560 (2020) | 2,773 (2021)
- Multi-families: 607 (2020) | 913 (2021)
Although single family sales are down, inventory is higher than it’s been all year. This is a sign that buyers may have an easier time securing one this fall, as it’s going to be the best time to buy in two years.
Average prices have continued their rise with another year over year increase of 13.4%, now at $584,268. Prices increased in every category.
- Single families: $566,229 (2020) | $665,256 (2021)
- Condominiums: $422,973 (2020) | $441,472 (2021)
- Multi-families: $546,057 (2020) | $627,863 (2021)
August 2021 compared to August 2019 saw a decrease in sales by .6% and an increase in prices by 26.3%.
Homes Listed For Sale:
There were 8.5% fewer listings this year compared to last August 2020. But 6% more listings over this time in 2019. This means that last year’s listings were higher than the year prior due to the delayed market as a result of COVID.
- 2021 – 8,914
- 2020 – 9,739
- 2021 – 8,406
Homes Placed Under Agreement (Pending Home Sales):
The number of homes placed under contract is down by 10% when compared to August 2020 but up by 6.5% over August 2019. Last August was what we referred to as a frenzied market- but it’s starting to cool. This means that competition is likely going to decrease giving buyers a break this fall.
- 2021 – 9,029
- 2020 – 10,032
- 2019 – 8,476
Price Changes:
Price changes decreased by a slight 1.6% year over year. Sellers got a little overzealous last year pricing high with the market as intense as it was due to the astronomical demand and plummeting supply. This year sellers are a little more realistic, but with pending sales down we may see an increase in price changes next month.
- 2021 – 716
- 2020 – 728
- 2019 – 769
New Hampshire Home Sales Down 5.4%
Highlights:
- The decrease in sales when compared to August 2020 is a sign that the demand is slowing down a bit giving current buyers a break with competition.
- Prices are still rising, as they will continue to do, so buy now to get the best price possible.
- A decrease in sales means that sellers should also be careful with pricing too high. Make sure you attract more buyers with an appropriate list price.
- We are heading into the best fall to buy in two years, so buyers should be ready to get out there and secure a home before competition rises.
Sales decreased for single families and condos but increased by 44% for single families in NH when compared to August 2020.
- Single families: 2,033 (2020) | 1,872 (2021)
- Condominiums: 523 (2020) | 492 (2021)
- Multi-families: 112 (2020) | 161 (2021)
Prices are still on the rise, now up by 18.1% over 2020. Less competition may inherently lessen the number of bidding wars and though prices will continue to rise, they may not spike as much over the next few months.
- Single families: $402,918 (2020) | $477,251 (2021)
- Condominiums: $295,708 (2020) | $333,114 (2021)
- Multi-families: $311,819 (2020) | $435,051 (2021)
The market is trying to catch up to where it would have been had COVID not put a massive wrench in the works, but it’s not quite there yet.
Data provided by Warren Group & MLS PIN for MA, and by NEREN for NH then compared to the prior year.